It’s about equal opportunities, human rights and economic success: find out what diversity is, what dimensions diversity encompasses, what role unconscious bias plays and what a real diversity strategy needs.
Imagine a company is looking for a new manager. The HR department sifts through numerous applications. One applicant reminds the CEO of himself: same university, similar career, similar interests. The decision is made – not primarily because of professional suitability, but because the candidate “simply fits in well with the team”. This is a classic case of unconscious bias. And shows why diversity is necessary: it opens up spaces for different perspectives, breaks up entrenched structures and ensures more equal opportunities.
What is diversity…not:
Before we clarify what diversity is, let’s clear up a few misconceptions:
- Diversity is not a business trend. It is not a fad, but a matter of human rights, the German Basic Law and the General Equal Treatment Act (AGG).
- Diversity is more than gender and origin. It is not just about women or people with a history of migration. Diversity encompasses many dimensions such as age, disability, sexual orientation and social background.
- Diversity does not mean lowering standards. It is often feared that diversity comes at the expense of performance. The opposite is the case: diverse teams are more efficient and innovative. Instead of asking “who fits in well” (cultural fit), companies should consider: What perspectives are we missing? Where can we learn something new? This is called “cultural add”.
What is diversity: a definition
The term diversity comes from the English language and means variety. In a social context, it means that all people – regardless of social or ethnic background, gender, sexual orientation, religion, age or physical and mental abilities – should have equal opportunities.
A recognized model for describing diversity comes from the management consultants Gardenswartz & Rowe: the “Layers of Diversity” show that diversity consists of several dimensions. In addition to the internal dimension – such as age, gender or origin – external factors such as education, professional experience or socio-economic status also play a role. The interplay of these factors influences our perspectives and experiences.
Why do we need diversity?
Diversity is not only an ethical or legal necessity, but also brings clear benefits:
– More innovation: Studies show that diverse teams are more creative and find better solutions.
– Better decisions: Different perspectives prevent groupthink and promote more informed decisions.
– Attractiveness as an employer: Companies with a practiced diversity culture attract and retain talent more easily.
– Social progress: Discrimination and inequality not only hinder individuals, but also slow down society – and the economy – as a whole.
Intersectionality: when discrimination overlaps
Diversity also means recognizing multiple discrimination. If a woman experiences sexism, this may already be a significant barrier. If she is also a woman of color, she often also experiences racism. This entanglement of discrimination is called intersectionality. The term was coined by Kimberlé Crenshaw, a professor at Columbia University, in 1989. Intersectionality must be considered in diversity strategies.
The historical movement
The concept of diversity is closely linked to the civil rights movement in the USA. Rosa Parks, Martin Luther King and many others fought for equal rights. In response, President John F. Kennedy introduced affirmative action in the 1960s – a package of measures to combat racism and sexism. Today, many countries have a legal framework that obliges companies to promote diversity.
Diversity needs inclusion
Diversity describes the variety of perspectives, backgrounds and experiences – but only inclusion ensures that this diversity is actually valued and utilized. It is not enough to hire people with different identities if they do not have the same opportunities to advance, be heard or contribute within the company. A diverse team without an inclusive corporate culture often leads to tensions because certain groups continue to feel excluded or not taken seriously. Inclusion means questioning existing power structures and unspoken norms: Who has the decision-making power? Who is interrupted in meetings? Whose perspectives are actually incorporated into strategies? A genuine diversity strategy must therefore always be linked to a focus on inclusion – otherwise it remains on the surface and does not really change the corporate culture.
DEI pays off – also economically
In addition to their social relevance, DEI, diversity, equity and inclusion also have economic benefits. Companies with a high level of diversity are financially more successful – numerous studies have proven this. Nevertheless, according to a study by the Diversity Charter, two thirds of German companies have not yet taken any measures. So there is still a lot to do.
Diversity and German law
It is also a legal obligation. The German Basic Law already prohibits discrimination:
(1) All people are equal before the law.
(2) Men and women shall have equal rights. The state shall promote actual equality.
(3) No one may be disadvantaged or favored because of their gender, origin, language, religion or ideology. No one may be disadvantaged because of their disability.
In addition, the General Equal Treatment Act (AGG) has protected people from discrimination in the workplace and in everyday life since 2006.
What can you do?
Diversity work is a joint task. Everyone can contribute to this in their own environment:
- Reflect on unconscious prejudices: Who do I prefer to hire? Who do I listen to most in meetings? Where do stereotypes influence me?
- Anchoring diversity in processes: HR practices that promote inclusion and objective assessment procedures reduce unconscious discrimination.
- Create visibility: Actively address diversity and promote different perspectives.
Diversity is not a nice-to-have, but a necessity for a fairer society and economic success. Take your next steps towards your customized diversity strategy with us.
